Skip to main content

IDFC DYNAMIC BOND FUND

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

Launched in June 2002, IDFC Dynamic Bond Fund has had aranking of CRISIL Fund Rank 1 since September 2012. For the past six quarters, the fund was also in the top 30 percentile of its peer group (CRISIL Fund Rank 1 and CRISIL Fund Rank 2).

The fund is managed by Suyash Choudhary, head ( fixed income), IDFC Mutual Fund.

IDFC Dynamic Bond Funds average assets under management ( AUM) for the quarter ended December rose to ₹ 2,387 crore, against ₹ 128 crore in the quarter ended December 2011. The long- term income fund category recorded asix- fold jump in AUM, primarily due to expectations of interest rates softening. Bond prices ( fund net asset value, or NAV) and yields move in opposite directions; a fall in interest rates would result in a rise in bond prices and boost longterm debt fund NAVs ( returns).

Investment style The fund plans to manage the portfolio through exposure to the money market and debt instruments, depending on market conditions. According to the stated asset allocation, IDFC Dynamic Bond Fund can allocate the entire portfolio to money market securities and debentures with residual maturity of less than one year. It can also invest up to 90 per cent in long- term debt instruments.

Risk- return attributes The fund has outperformed the benchmark CRISIL Composite Bond Index and the category in the six- month, one-, twoand three- year time frames.

Through the past year, it has delivered 13 per cent returns, against nine per cent and 11 per cent by the benchmark and the category, respectively.

Though the fund has been more volatile than its peers, it managed to outperform those on a risk- adjusted basis in the previous three- year period, indicated by its Sharpe ratio of 2.83, against the categorys 2.69.

Duration management The fund has actively managed its duration ( maturity) across market cycles. In 2009, when the yield on the 10- year government security rose from 6.26 per cent to 7.73 per cent, the fund reduced its maturity from 14 years to 0.6 year. With the Reserve Bank of India ( RBI) raising key policy rates since March 2010, the fund reduced its average maturity from eight years to 3.7 years at the end of December 2011. From July 2012, it increased its maturity steadily, in line with expectations of an interest rate cut by the central bank. The dynamic duration management helped the fund outperform its peers.

Portfolio analysis In terms of portfolio allocation, the fund invested in collateralised borrowing and lending obligation in May 2009, when interest rates started rising. In 2010 and 2011, the fund manager invested across government securities, certificates of deposit, non- convertible debentures and bonds, based on the market scenario. In 2011, when the yield on the 10year government security rose from 8.14 per cent in March to 9.07 per cent in October, the fund was primarily invested in certificates of deposit, nonconvertible debentures and bonds.

In March 2012, when oneyear certificate of deposit rates were at their peak, the fund increased its exposure to this category to 69 per cent. However, in August 2012, it did away with this exposure completely. Since then, the fund has maintained high exposure to government securities, anticipating an interest rate cut by RBI. On January 29, RBI cut the repo rate by 25 basis points. During the threeyear period ended December 2012, the fund invested 86 per cent of its portfolio in the highest rated papers (AAA/ A1+), as well as government securities.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

National Savings Certificate

National Savings Certificate Here's everything you need to know about the 5-year savings scheme offered by the Government This is a 5-year small savings scheme of the government. From 1 July 2016, a National Savings Certificate (NSC) can be held in the electronic mode too. Physical pre-printed NSC certificates have been discontinued and replaced with Public Provident Fund-like passbooks. What's on offer The minimum amount you can invest in them is Rs100 and there is no upper limit. Under this scheme, all deposits up to Rs1.5 lakh qualify for deduction under section 80C of the Income-tax Act, 1961. The interest earned is taxable. You can invest in multiples of Rs 100. These certificates can be owned individually, jointly and also on behalf of minors. The interest rates for all small savings schemes are released on a quarterly basis. The effective rate for NSC from 1 October to 31 December is 8%. The interest is calculated on an annual compounding basis and is given along w...
Read more

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...
Read more

Mutual Fund Review: HDFC Index Sensex Plus

  In terms of size, HDFC Index Sensex Plus may be one of the smallest offerings from the HDFC stable. But that has not dampened its show, which has beaten the Sensex by a mile in overall returns   HDFC Index Sensex Plus is a passively managed diversified equity scheme with Sensex as its benchmark index. The fund also invests a small proportion of its equity portfolio in non-Sensex scrips. The scheme cannot boast of an impressive size and is one of the smallest in the HDFC basket with assets under management (AUM) of less than 60 crore. PERFORMANCE: Being passively managed and portfolio aligned to that of the benchmark, the performance of the index fund is expected to follow that of the benchmark and in this respect, it has not disappointed investors. Since its launch in July 2002, the fund has outperformed Sensex in overall returns by good margins.    While every 1,000 invested in HDFC Index Sensex Plus in July 2002 is worth 6,130 now, a similar amount invested in Sensex then wo...
Read more

Different types of Mutual Funds

You may not be comfortable investing in the stock market. It might not seem like your cup of tea. But you can start by investing in Mutual Funds. Many first-time investors invest in Mutual Funds. This is because they do not know how to invest in individual securities. Basic information on Mutual Funds People invest their money in stocks, bonds, and other securities through Mutual Funds. Each Fund has different schemes with specific objectives. Professional Fund Managers look after these schemes. Your Fund Manager could help you invest in a scheme that suits your financial goal. Functioning of Mutual Funds You could make money through Mutual Funds in different ways. A single Mutual Fund could hold many different stocks, bonds, and debentures. This minimizes the risk by spreading out your investment. You could earn dividends from stocks and interest from bonds. You could also earn capital by selling securities when their price increases. Usually, you could choose to sell your share any t...
Read more

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now